US · For the American investor
REITs at 3-4% with US-equity volatility. Direct US property under federal+state tax stack at 2-4% net. Syndications locked up 5-10 years with K-1 complexity. International REIT ETFs that exclude direct emerging-Asia residential. The US distribution stack systematically prevents the diversification its research desks recommend.
Bangkok prime · 5 to 6% net, FETF-clean repatriation, Thai-US double-tax treaty in force since 1996, no PFIC exposure on direct title-deed ownership. This page is the side-by-side honest comparison · including the FATCA / FBAR / PFIC mechanics your CPA will ask about.
Your US-resident alternatives, after-tax
US REITs (publicly traded)
3 to 4% gross
Listed equity volatility · concentrated US retail/industrial/office/residential · ordinary-income tax on distributions (no qualified dividend treatment) · sensitive to Fed rate cycle
Direct US residential (non-1031)
4 to 6% gross · 2 to 4% net after tax stack
Federal + state + local property tax stack · landlord registration in many states · annual property tax 1-3% of assessed value · long-distance management friction
1031 like-kind exchanges
Defers capital gains, doesn't increase yield
Domestic US property only · cannot use for international diversification · 45-day identification window + 180-day close · qualified intermediary fees · adds complexity
Real-estate syndications (Reg D)
5 to 8% projected · realised often 4 to 6%
Long lock-up (5-10y) · accredited-investor only · single-asset concentration risk · sponsor fees · K-1 tax filing complexity · concentrated in US Sun Belt multi-family
International REIT ETFs (proxy diversification)
3 to 5%
Listed equity volatility · most exclude direct emerging-Asia residential · concentrated in Singapore / HK / Australia · Thailand exposure via SET-listed REITs is minimal
The tax wedge · what falls out of the equation
Federal + state income tax on rental
Impact in the US
Rental income taxed at marginal rates · state taxes vary 0% (FL, TX, NV) to 13.3% (CA) · combined effective rate often 30-45% for HNW
Thai treatment
Thai withholding tax on rental income with credit available against US tax under Thai-US double-tax treaty (1996, in force). Standard 30% Thai expense deduction. Net Thai-source effective rate often lower than equivalent US-source for the same yield. The diversification reduces state-tax concentration.
1031 exchange constraint
Impact in the US
Like-kind exchange is domestic-US-only · cannot defer gains by rolling into international property · lock-in for US-domestic exposure
Thai treatment
Bangkok property is by definition outside the 1031 chain. This is a feature, not a bug · genuine geographic and currency diversification that no domestic 1031 chain can produce. Capital gains on disposal are addressed via the Thai withholding system + US foreign tax credit.
FATCA + FBAR reporting
Impact in the US
US persons must report foreign financial accounts (FBAR if aggregate >$10K) and foreign property income annually. Non-compliance penalties severe.
Thai treatment
Direct property ownership (title deed in your name) is not itself FATCA-reportable. Bank account holding rental income is FBAR-reportable above $10K aggregate threshold. Khorna's process documents the FETF, title, and account flow so your CPA can file Form 8938 and FBAR cleanly.
PFIC trap on Thai-listed REIT exposure
Impact in the US
US persons holding Thai-listed REIT shares can be classified as holding a PFIC, triggering punitive Section 1291 tax treatment
Thai treatment
Direct foreign-quota condo ownership has no PFIC exposure · you own the title deed, not a fund interest. This is the cleaner structure for US persons compared to S-REITs or Thai-listed REITs which can trigger PFIC. We coordinate with US tax counsel on structure at acquisition.
US-Thailand Income Tax Convention 1996 (in force). Eliminates double imposition. US foreign tax credit available for Thai tax paid on Thai-source income. We strongly recommend coordinating with a CPA familiar with international RE, FATCA, and PFIC rules at the structuring stage. We can introduce US-tax-aware counsel.
Visa · pathways for American buyers
DTV (Destination Thailand Visa)
For whom
American remote workers, freelancers, contractors earning from US clients · 35-50yo digital nomads
Why
5-year multi-entry, 180-day stays, 500K THB threshold (~$13K). Pairs with an 8 to 14M THB 1-bed in Asok, Phrom Phong, or Phayathai · half-year base, half-year US.
LTR Wealthy Global Citizen
For whom
American HNW with 1M USD+ assets and 80K USD+ income · ex-finance, post-exit founders, family-office principals
Why
10y residency + 17% income-tax cap on Thai-source income + foreign-source remittance exemption. Combined with Foreign Earned Income Exclusion (FEIE) qualifying-presence test, can materially reduce US tax burden for Americans living abroad.
LTR Wealthy Pensioner
For whom
American retirees with 80K USD+ pension income (Social Security + 401k drawdown + private pension)
Why
10y residency + 17% Thai tax cap. Pairs with 10 to 20M THB 2-bed in Sathorn, Phrom Phong, or Riverside as retirement base. Thai healthcare at 1/5 US prices is a primary draw.
Thailand Privilege
For whom
American HNW who don't qualify for LTR · 900K to 5M THB membership-based visa
Why
Includes bank-account introduction service, removing the most common foreigner banking friction. Often paired with property purchase for buyers under 50 who don't fit DTV criteria.
Four American profiles we work with
The post-exit founder
Just sold a US tech company. $2 to 8M post-tax liquidity. Wants pre-deployment international diversification before the cash hits a US-equity-heavy default allocation. Often pairs with FEIE qualifying residency for tax efficiency. Typical purchase: 18 to 35M THB 2-bed Phrom Phong, Sathorn, or Riverside branded.
The Sun Belt landlord rotating to international
Built a 4-10 unit US Sun Belt portfolio. Cap rates compressed 2022-2025. Considering rotating one or two units into Bangkok prime for genuine non-USD exposure that 1031 cannot deliver. Typical purchase: 12 to 25M THB 1-bed or 2-bed Phrom Phong, Asok, or Sathorn.
The retiring American
Retired professional couple, 60s. $1.5 to 4M net worth + Social Security + 401k. Considering Bangkok as full or part-year residence (Thai healthcare at 1/5 US prices is the primary attractor, LTR Wealthy Pensioner is the visa). Typical purchase: 12 to 22M THB 2-bed Phrom Phong, Sathorn, or Riverside.
The American family-office principal
Multi-generational US family wealth. $10M+ net worth across diversified asset classes. Building geographic diversification outside USD-domiciled assets. Estate planning consideration · Thailand has no inheritance tax under 100M THB to direct descendants. Typical purchase: 30 to 80M THB branded residence (Mandarin Oriental, Aman, Four Seasons) in Sathorn, Riverside, or Phrom Phong.
USD / THB · the currency context
THB is one of the most stable EM currencies over a decade · managed by Bank of Thailand (top-quartile EM central bank) but not pegged. Bangkok property gives you genuine non-USD exposure that S-REITs (USD-correlated via SGD), HK property (HKD pegged to USD), or Mainland China (capital-controlled) cannot replicate.
For Americans concerned about long-term USD purchasing power · particularly in retirement scenarios paid in USD-denominated Social Security or pension drawdown · holding a percentage of net worth in stable EM currency real estate is a structural hedge, not a speculation.
BoT FX reserves
~$220B · over 8 months of imports
Public debt
~58% of GDP · below the 70% legal ceiling
Sovereign rating
BBB+ S&P · BBB+ Fitch · Baa1 Moody's · investment grade
Inflation 2024
~1 to 1.5% · anchored to BoT target
Investor guide · PDF
6-page tailored PDF · home-market alternatives with after-tax numbers, the tax wedge analysis, visa pathways, our area + unit recommendations for your profile. Sourced data, published methodology.
No spam · just the PDF by return, and one follow-up if relevant.
Talk to us
Tell us your US tax situation, your existing RE allocation, and your timeline. We model your existing yield and tax stack against a Bangkok-prime allocation · and route you to US-tax-aware counsel for the FATCA / PFIC structuring side.
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